Wednesday, 07 May 2025 08:55

Fonterra to close Canpac site, impacting 120 jobs

Written by  Staff Reporters
Fonterra is working through a consultation process, including potential redeployment opportunities. Fonterra is working through a consultation process, including potential redeployment opportunities.

Fonterra is closing a milk powder blending and packaging site in Hamilton, a move that will affect 120 jobs.

The co-operative says the closure of the Canpac site follows its decision to focus on higher value ingredients such as advanced proteins and medical nutrition.

The plant currently packs up to 4,000 metric ton of powders per year, less than 1% of the co-op's total product volume.

Fonterra's chief operating officer Anna Palairet says the co-op is committed to supporting the impacted employees.

The co-op is working through a consultation process, including exploring potential redeployment opportunities before operations are planned to come to an end on July 31.

Palairet says low product volumes and increasing complexities in production has created challenging economic conditions for the facility.

"It's been a tough day for all the team at the site. Making decisions like this is never easy.

"Our strategy is about creating end-to-end value and growing total returns for our farmer shareholders.

"We believe the best way to achieve this is to focus on our strengths and scale in ingredients and foodservice, and we are prioritising our investment on the parts of our operations that are better suited to this."

More like this

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

Editorial: A new era for two co-ops

OPINION: Farmer shareholders of two of New Zealand's largest co-operatives have an important decision to make this month and what they decide could change the landscape of the dairy and meat sectors in New Zealand.

Should co-op sell its consumer brands?

OPINION: As CEO of the Dairy Board in the 1980s I was fortunate to work with a team of experienced and capable executives who made most of the brand investments that created the international consumer business Fonterra inherited. Soprole in Chile was the largest, but there were more than 20 countries where consumer marketing companies were established and Anchor and other brands were successfully launched.

Featured

'One more push' to eliminate FE

Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Quid prod quo?

OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…

Deadwood

OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter